The 0% SDLT rate for transactions up to £125,000 only applies if you do not already own a property.
Photograph: Beresfords

Q My sister and I have each inherited a 50% share of a property valued at £120,000. I have agreed to buy my sister’s share from her for £60,000. The solicitor who has done the transfer conveyancing has told me I have to pay £1,800 stamp duty. Could you tell me if that is correct? GG

A Assuming that you already own property, yes, that is correct. You are being charged 3% which is the higher rate of stamp duty land tax (SDLT) for transactions up to £125,000 which result in multiple property ownership. It would be the same if you owned a home and bought a second one or a buy-to-let property costing more than £40,000.

If buying your sister’s share of the inherited house will not leave you owning two or more properties, your solicitor is wrong. The higher rates of SDLT do not apply if you end up owning just one property. Instead, your £60,000 transaction would fall into the 0% standard SDLT rate for transactions up to £125,000 so there would be no SDLT bill.

If you are going to move into the inherited house and plan to sell your current home, you can claim a refund of the higher rate of SDLT which you should do within three months of the sale of your former home.